cesKando Company currently pays $13 per unit to buy a part for a product it manufactures. Instead, Kando could make the part forper unitcosts of $6 for direct materials, $4 for direct labor, and $2 for incremental overhead. Kando normally applies overhead costs using apredetermined rate of 200% of direct labor cost.(a) Prepare a make or buy analysis of costs for this part.(b) Should Kando make or buy the part?Direct materialsDirect laborOverheadCost to buyCost per unitCompany should:MakeMakeBuy

Detailed Explanation: a. Make or Buy Analysis of Costs for Kando Company The analysis compares the…

Answered: ces Kando Company currently pays $13…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
Kando Company currently pays $14 per unit to buy a part for a product it manufactures. Instead, Kando could make the part for per unit costs of $6 for direct materials, $4 for direct labor, and $2 for incremental overhead. Kando normally applies overhead costs using a predetermined rate of 200% of direct labor cost. (a) Prepare a make or buy analysis of costs for this part. (b) Should Kando make or buy the part? Make Buy Direct materials Direct labor Overhead Cost to buy Cost per unit Company should:
Please help me. Thankyou.
-S ! 1 Kando Company currently pays $11 per unit to buy a part for a product it manufactures. Instead, Kando could make the part for per unit costs of $5 for direct materials, $3 for direct labor, and $1 for incremental overhead. Kando normally applies overhead costs using a predetermined rate of 200% of direct labor cost. (a) Prepare a make or buy analysis of costs for this part. (b) Should Kando make or buy the part? Direct materials Direct labor Overhead Cost to buy Cost per unit Company should: F1 @ 2 W S -6° F2 # 3 חי E D Make 20 F3 $ 4 MAR 29 R Buy F a F4 % 5 8 DII FB I ( N M 9 F9 J K O O < F10 P C
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Meman
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